bond accounting business process workshop · 6/15/2017 · bond accounting business process...
TRANSCRIPT
• BPW Objectives
• What You Should Take Away
• Bond Accounting Overview
• Key Terms
• User Roles Summary
• Business Processes
– Detailed End User Role Description
– Process Overview
– Demonstration/Discussion
• Change Impacts Activity
• Next Steps
• Appendix
Agenda
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 2
BPW Objectives• The Business Process Workshops allow participants to:
– Gain an understanding of the new FI$Cal processes and end-user
roles
– Understand the next steps in the implementation phase
– Know how to get assistance from FI$Cal
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 3
What You Should Take Away• Materials from today’s session:
– Business Process Workshop Presentation
– Change Impact Tool
• Understanding of the new FI$Cal processes, the next steps, and
the support available from FI$Cal
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 4
FI$Cal Accounting Solution
Grants
General Ledger / Commitment Control
Project Mgmt
Accounts Payable
Project Costing
Billing
ContractsAsset Mgmt
Deal Mgmt
Cash MgmtLoan
Accounting
Jo
urn
als
, F
&A
, B
ud
ge
ts
Expenditures,
Payables
Pu
rch
ase
Ord
ers
Goods
Received
Exp
en
ditu
res
Encumbrances
Capital
Assets
Project
DetailsePro / PO
En
cu
mb
ran
ces
Asse
t A
dd
itio
ns, D
ep
recia
tio
n, R
etire
me
nt
GL
Journals
Award Data
Unb
ille
d A
R, R
eve
nu
e
Reve
nu
e, A
R
Revenue,
AR, Cash
Customer
Invoices
Billable
Transactions
GL
Journals
Project Data
Billing Status Updates
Payment
details
Deposit
Details
Accounts Receivable
Vo
uch
ers
Bond
Transactions
Labor Distribution
GL
Jo
urn
als
La
bo
r
Acco
un
tin
g
5Introduction
Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
Common Bond Transactions
6
Proceeds,
Cash
Journals,
Budgets
Expenditures,
Payables
Debt Funded ExpendituresDebt
ProceedsDebt
Details
Full Accrual Accounting
Debt Details
Debt Service
Debt
Budgets
Debt Project ID
Expenditure Project
ID
General Ledger / Commitment Control
Accounts Receivable
Debt Issuance/ Refunding
Deal Mgmt
Project Costing Accounts Payable
Labor DistributionHyperion
GL
Journals
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
Bond Accounting (BA)
Debt
Information
STO Debt Management System (DMS)
Dept DM ProcessorControl DM Processor
Full and Modified
Accrual
Accounting
General Ledger
Issue DebtManage Debt
Transfer Funds
Track Debt Service
Refunding Debt
Accounts Receivable
Debt
Proceeds
Details
Accounts Payable
Debt Service
Details
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
Project Costing
Expenditure
Tracking
7
Term Definition
Bond Accounting Includes accounting for all types of debt and related debt
instruments; the process includes recording for all accounting
entries generated by the lifecycle stages of the debt and debt
funded activities.
Deal Management
(DM)
Module used to maintain records of outstanding debt and
providing full accrual debt accounting and reporting.
Debt Instrument An obligation that enables an issuing party to raise funds by
promising to repay a lender in accordance with the terms of a
contract.
Debt Management
System (DMS)
The State Treasurer’s Office’s Debt Management System is
the state Debt Book of Record.
Key Terms
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 8
Term Definition
Deal A security recorded in the Deal Management (DM) module
for tracking, reporting and accounting purposes. The deal
contains the Facility, Portfolio, Security, and Series.
Facility In FI$Cal, Facility will be used to store the Act or Statute.
Portfolio In FI$Cal, Portfolio will be used to store the Program for debt
as defined by the STO.
Series Identifies a current issuance of debt by date and type.
Security In FI$Cal, Security will be used to store the CUSIP.
CUSIP An acronym which stands for Committee on Uniform
Securities Identification Procedures. This number is a unique
identifier for a security.
Key Terms
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 9
Term Definition
Debt Project A Project that is used in the FI$Cal modules (e.g. AR, DM,
AP) to tie together related transactions back to the debt
issuance and points to more details about the debt.
In FI$Cal, the Debt Project ID will be determined by values
given by the STO.
Debt Funded
Expenditure Project
‘Exp Project’
Debt is frequently issued for the purpose of funding specific
projects, construction or otherwise. When debt funds a
project they are known as Debt Funded Expenditure
Projects, or simply Expenditure (Exp) Projects. These
projects may represent grants, new construction, expansion,
renovation or replacement project for an existing facility or
facilities.
Key Terms
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 10
Term Definition
Accounting Event Event in the lifecycle of the debt that triggers accounting
entries.
Substitution Rules Allows for the ability to replace a specific chart field value
such as an account or fund with a new value based on
configurable criteria.
Sell/Buyback The current process of refunding such as early redemptions,
commercial paper paydown, remarketings, and defeasances
in FI$Cal.
Key Terms
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 11
End-User Role Description
Control DM
Processor
The control agency end users who will:
- process debt issuance, including viewing debt details to
validate, reversing debts and performing any necessary
manual refunding or defeasances
- process interfaces related to debt issuance.
STO Demand Journal
Processor
The STO end users who will record demand journals
(deposits) in FI$Cal.
SCO STO AR
Payment Processor
The end users who will:
- enter payment data
- apply payments to invoices (through worksheets or
Payment Predictor)
- run FTB/Lottery Offset and Outbound FTB Interfaces.
Control Role Summary
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 12
End-User Role Description
SCO GL Journal
Processor
The SCO end users who will:
- create journals in the modified accrual, cash adjustment, full
accrual adjustment ledgers
- process the transfer of cash into the bond expenditure sub-
funds
- run online edit and budget check and submit to the journal
approval process
- run the process to load investment accounting details to
FI$Cal
- runs the process to pass transaction request details to
FI$Cal.
Control Role Summary
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 13
End-User Role Description
SCO GL Journal
Approver
The SCO end users who will:
- approve specified journals
- approve AR direct journal payments
- review and approve investment accounting entries
- review and approve department requests for transfers
between CTS bank accounts
- correct claim funding information in case of invalid
ChartField translation
- update and correct funding information for claims marked in
error, run the claim validation process, and set up the Legacy
Defaults page.
Control Role Summary
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 14
End-User Role Description
SCO Appropriation
Approver
The SCO end users who will:
- create and post statewide controlling budget journals
- post appropriation transactions interfaced from Hyperion
- override claim budget exceptions.
SCO Cash Validation
Exception Processor
The SCO end users who will override cash validation
exceptions.
SCO AP Expedite
Processor
The SCO end user with access to approve vouchers created
through SCO Expedite processing workflow.
SCO AP Expedite
Approver
The SCO control end user with access to add and review
vouchers on behalf of non-FI$Cal departments through SCO
Expedite processing.
Control Role Summary
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 15
End-User Role Description
STO AP Processor The STO end users who will enter, research, delete, and
correct vouchers.
SCO Pay Cycle
Processor
The SCO end users who will:
- run warrant pay cycle
- generate outbound print files
- post payments for warrants.
STO Pay Cycle
Processor
The STO end users who will:
- run pay cycle,
- cancel payments
- post payments.
Control Role Summary
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 16
End-User Role Description
DM Processor The end users who will process debt issuance not
administered by STO.
PC Processor The end users who will:
- create projects
- maintain projects
GL Processor The end users who will:
- creates journal entries in the Modified Accrual ledger
- review and update the journal entries within the Cash
Management module.
GL Approver The end users who will approve department journal entries.
Departmental Role Summary
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 17
End-User Role Description
AP Processor The end users who will :
- create vouchers for the payment of invoices
- manage the vouchers through budget checking, hold, and
matching activities
AP Approver The end users who will approve the vouchers for payment.
AP Payment
Processor
The end users who will run the department's Pay Cycle and
manage the payments, including canceling, posting, and
escheating departmental checks.
AR Payment
Processor
The end users who will enter deposit and payment data,
including applying payments to invoices.
BI/AR Approver The end users who will review, update, and approve bills,
receivable items, and deposit and payment data, including
setting transactions to post.
Departmental Role Summary
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 18
Presentation Legend
Organization
Indicates that the process
is completed by another
department
Indicates that the process
is automatically completed
by FI$Cal
FI$Cal User Role
Indicates that the sub-process
is completed by an end user
assigned the listed role
Business Process
Sub-Process 1
Process Step 1
Process Step 2
...
Slid
e L
ayo
ut
Sub-Process 2
Process Step 1
Process Step 2
...
FI$Cal User Role
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 19
• Every debt issuance (including C.P.) will require a new subfund
• The fund will have the Debt Project ID listed as an attribute
• Reports in FI$Cal will relate transactions utilizing the fund and
debt together
• The Fund and Sub-Fund concepts exist in a single ChartField
– The first 4 digits identify the debt fund
– The next 5 digits identify the debt sub-fund
Fund ChartField
Usage
1 2 3 4 5 6 7 8 9
Bond Sub-Fund
Bond Fund
Positions
20Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
• Type of Debt Sub-Fund
• Debt Project ID
• Taxable vs Non-Taxable
• Type of Debt Instrument (G.O., L.R.B., C.P., etc.)
• Liquidating or Non-Self Liquidating
• Governmental Use or Business Use
• Restricted Use:
– Build America Bond
– Green Bond
– Etc.
Fund ChartField Attributes
21Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
• This chartfield would be utilized as a statewide solution to track
expenditures related to debt funds.
• Departments will be able to define a 10-alphanumeric character
to properly classify the transaction for debt activity purposes.
Agency Use ChartField
22Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
Name Usage
Proceeds Net proceeds
Expenditure Debt funded expenditures
Debt Service Fund debt service payments
Reserve Protection against default for debt holders
Rebate Arbitrage related tax liability
Escrow Refunding proceeds
Cost of Issuance Debt issuance expenses paid directly by the state
Construction
ContingencyConstruction costs in excess of plan / budget
Types of Debt Sub-Funds
23
• The organization of debt will use different functionalities in the
Deal Management module to keep STO DMS, FI$Cal and the
debt hierarchy structure consistent
• Debt will be organized in Deal Management as Deals using Debt
Instrument Types, Facilities, Portfolios, and Security IDs
(CUSIPs) will be utilized to organize debt.
• Every item of debt will utilize a corresponding instrument type;
General Obligation, Commercial Paper, Lease Revenue Debt
(LRBs), etc.
• Accounting Templates will be populated on each Debt Instrument
for accounting event purposes
Configure Deals
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 24
• Debt Project ID will be created using values from STO DMS
Debt Project ID Schema
25
Debt Project ID Debt
Instrument ID
Facility
ID
Portfolio
ID
Series
ID
Security
ID
“DEBT” + Act +
Series
Non-Lease
Revenue (LRB)
debt
Act Program Series CUSIP
“DEBT” + Fund
+ Series
Lease Revenue
(LRB)
Statute Program Series CUSIP
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
DM Debt Instrument TypesDebt Instrument Types Debt Instrument Types
General Obligation Bond – Fixed General Obligation Bond - Variable
Revenue Bond - Fixed Revenue Bond - Variable
Lease Revenue Bond Commercial Paper
Revenue Anticipation Notes Revenue Anticipation Warrants
Bond Anticipation Notes Certificate of Participation
Interim Notes
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 26
• Debt Instrument Types may be added as needed to
accommodate new debt issues/attributes
• The actual authorization and issuance of debt will be performed
outside of FI$Cal. The accounting entries are generated from
FI$Cal that will record debt lifecycle events.
• There are four avenues to input debt information into FI$Cal
– DMS to DM (Sale, Debt Service, and Refunding)
– Fee Update to DM
– Price Update to DM
– Manual Deal to DM
• Debt Issuance includes the following Business Processes:
– Generate Debt Issuance
– Record Debt Issuance
– Deal Update Spreadsheet
– Record Manual Deal (e.g. Commercial Paper)
Debt Issuance
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 27
• Bond Accounting will leverage the Project ID ChartField in order
to create a relationship and common denominator between
transactions that occur in multiple FI$Cal modules
• Debt Project IDs will need to be defined for each new bond
act/statute
• Expenditure (Exp) Projects will represent debt funded activities,
e.g. construction, etc.
• Departments will be able to create Exp Projects as needed
Bond Accounting Projects
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 28
Generate Debt Issuance
Key Impacts The actual issuance of debt will be performed outside of FI$Cal
Departments will now define Expenditure (Exp) Projects for their internal reporting
requirements, Exp Projects/Programs are required on the Funding Request
Prepare Funding Request
Depts
Develop Financing Plan
Determine Funding Requirements
DOF reviews Depts’ requests
Determines what will get funding
Once DOF approves, STO develops
financing plan
Prepare Transfer Authority Request
If needed, send
Transfer Authority
Request to SCO
DOF & Depts & STO Depts
Include Exp
Projects/Programs
that will be used
(Outside of FI$Cal)
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 29
Record Debt Issuance
Key Impacts Most debt will be interfaced into DM from STO
The accounting entries generated from DM will record Debt Lifecycle events to the
department adjustment ledger on a full accrual basis
Interface Debt InformationIssue Debt
STO &
Departments
STO enters debt related
information in DMS at the
time of issuance
Select Departments have
the ability to issue their own
debt
FI$Cal uses data from DMS will
populate DM in order to record the debt
information and produce the necessary
full accrual accounting entries
SCO can upload department issued
debt into FI$Cal using a spreadsheet
(Outside FI$Cal)
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 30
Deal Update Spreadsheets
Key Impacts SCO or debt issuing Departments will be required to populate required information in two
separate spreadsheet templates (fee template and price template)
Examples of required information include Price % of Par and Fees such as ‘Underwriter
Discount’, ‘Prepaid Insurance’, or ‘Cost of Issuance’
SCO or debt issuing
Departments populate
spreadsheet with required
information
Interface Debt InformationPopulate Spreadsheet
TemplateUpdate Debt Information
FI$Cal data from STO
DMS legacy is incomplete
for SCO and Departmental
needs
FI$Cal updates
deals in DM
DM Processor
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 31
Record Manual Deal
Key Impacts SCO or debt issuing Departments will be required to populate basic commercial paper
information in a spreadsheet upload
Basic information includes date of issuance, amount issued, and program
Populate Spreadsheet Upload Template
Upload Debt Information
Configure Deal
STO DMS legacy does not track
all debt (e.g. commercial paper, etc)
SCO or debt issuing Departments
populate spreadsheet with debt
information (basic information for
commercial paper)
FI$Cal creates
deals in DM
DM Processor DM Processor
Add or update
additional details on
deal as needed
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 32
• If there are any errors in entering or loading a deal after it has
been saved, FI$Cal does not allow deletion of a deal. The deal
must instead be deactivated.
• The incorrect deal must be identified and the undo deal process
run for said deal.
• Once the undo deal process runs to completion the deal will be
set to a status of deactivated and the accounting entries
automatically reversed.
• The corrected deal will have to be manually re-entered.
Deactivating a Deal
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 33
• The Debt Proceeds business process supports the recording and
application of monies received directly into the State Treasury in
the FI$Cal Accounts Receivable module
• The STO will record the proceed amounts it receives
• The SCO will record the proceeds to the correct funds
• Debt Proceeds includes the following Business Processes:
– Debt Proceeds to State Treasury
– Record Proceeds Deposits
Debt Proceeds
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 34
Debt Proceeds to State Treasury
Key Impacts STO records proceeds in FI$Cal for debt where STO is the trustee
STO will need to provide to the SCO an allocation worksheet on the same day as the
Remittance Advice, these documents will need to be updated for FI$Cal ChartFields
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 35
(Outside of FI$Cal)
Create Remittance Advice (RA)
STO & SCO/CFS
Record STO Demand Journal Entry
STO enters cash deposit information
FI$Cal generates Demand journal
entries
FI$Cal creates AR Deposits
STO runs report to determine the
associated AR Deposits
STO sends the report listing the AR
Deposits and finalized paper Remittance
Advice (TC30) form to the SCO
STO Demand Journal
Processor
STO records
fund/sub-fund
information on the
Remittance Advice
(TC30) form
SCO/CFS reviews
STO confirms
receipt of money
SCO assigns
required Debt
Proceed Funds
FI$Cal establishes
debt project
FI$Cal configures
fund
Create Debt Project and Proceed Funds
A
Record Proceeds Deposit
Key Impacts G.O. Allocation worksheet will continue to be used
Direct Remittances are now entered as AR Deposits in FI$Cal
SCO will notify Departments that their payment has been processed.
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
If needed, establish
Transfer Authority
Budgets by Budget
Journal
SCO notifies
Departments with a
memo that their debt
proceeds have been
processed
36
Record Transfer Authority
SCO Appropriation
Approver
ARecord Debt
Issuance as Deal
STO interfaces
debt information
from DMS
SCO updates
debt information
(price and fees)
using deal update
spreadsheets
Interface Payments
SCO key data entry staff
enters information into legacy
based on report from STO
and RA form as well as the
G.O. Allocation worksheet
FI$Cal interfaces payments
from legacy using
Controller’s Receipt Interface
Process Payments
FI$Cal
processes
payments on
behalf of
departments
• SCO establishes initial transfer budgets in the proceeds fund
and, if needed, reallocates using the Transfer Authority Request
form submitted by the departments
• Generally debt funded transactions require a cash transfer
• All debt funded transactions require cash validation
• Debt Funded Transactions includes the following Business
Processes:
– Tracking Expenditures
– Debt Funded Expenditures
– Automated Debt Cash Transfers
– Manual Debt Cash Transfers
Debt Funded Transactions
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 37
Key Impacts Departments can track and report on project expenditures at a detailed level
Expenditures will be linked to Debt using the Debt Project ID listed in the fund
attributes
Tracking Debt Funded Expenditures
Create Exp ProjectTransact and Track
Expenditures
Create Project ID in PC
Maintain project trees
including debt program, capital
outlay, and project activity
PC Processor
FI$Cal automatically
tracks expenditures
using transactions linked
by Exp Project ID
Detailed project
reporting will be
produced in PC
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 38
• Debt funded expenditures require transfers of cash between debt
proceeds sub-funds and related expenditure sub-funds
• Automated Debt Cash Transfers
– When Fund Transfer Rules have been established, FI$Cal is
capable of automatically transferring cash related to vouchers
processed in the Accounts Payable during the Pay Cycle process
– These Fund Transfer Rules require SCO approval
• Manual Debt Cash Transfers
– In all other instances, manual transfers are needed
Debt Cash Transfers
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 39
Debt Funded Expenditures
Key Impacts Cash Transfer Letters for will no longer be required
Depts can establish Fund Transfer Rules to automatically transfer cash
Fund Transfer Rules must be approved by the SCO prior to use
Exp Project is required to track expenditures
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
FI$CAL DEPARTMENTS
40
Submit Voucher
Exp Project is
used
Process Payments
Submit Voucher
Review Voucher
Create Manual Cash Transfer Journal
SCO audits
the payment
Process Transfer Request
If Dept has established
Fund Transfer Rules,
skip this step
Exp Project is used
AP Processor SCO AT ApproverGL Processor
FI$Cal uses Fund
Transfer Rules to
automatically transfer
cash during Pay Cycle
SCO approves the
cash transfer journal if a
manual cash transfer is
created
Approve Voucher
FI$Cal
workflows
voucher
Approve
voucher
AP Approver
Debt Funded Expenditures
Key Impacts Depts can establish Fund Transfer Rules to automatically transfer cash
Fund Transfer Rules must be approved by the SCO prior to use
Dept submits
Claim
Process Payments
Submit Claim
Depts
Interface Claim and TC38
Prepare and Submit Cash Transfer Request
FI$Cal interfaces
Claim and Cash
Transfer Request
Process Transfer Request
FI$Cal uses Fund
Transfer Rules to
automatically transfer
cash during the Pay
Cycle
SCO processes the
cash transfer if no Fund
Transfer Rules have not
been established
If Dept has established
Fund Transfer Rules,
skip this step
Prepare and Submit
Cash Transfer Request
(TC38) to the SCO
(Outside of FI$Cal)
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
NON-FI$CAL DEPARTMENTS
41
42
Automated Debt Cash Transfers
Key Impacts This process is occurs during the Pay Cycle for Accounts Payable voucher expenditures
Cash Transfer Letters for Debt Cash Transfers will be replaced and automated by this
process if the automated Fund Transfer Rules are established
This process does not currently replace other types of Transfer Letters, which will
continue to be used outside of FI$Cal
Analyze Exceptions/ Overrides
Identify Debt Funded
Expenditures
The source
transaction tables
are identified and
the source
transactions are
categorized based
upon the funding
Perform Cash Validation
Cash entries
will be
checked
against the
Cash
Validation
Statewide BU
Any transaction
that fails the
Automated Debt
Cash Transfer
process will be
require manual
intervention
Create Transfer Entries
Each transaction will
result in one or more
transfers
Departmental rules or
configuration defines
the relationship
between debt funds
Calculate Transfer Amounts
The cash needs of
the expenditure sub-
funds are calculated
and stored on a
temporary basis until
the transfer entries
are written
SCO Cash Validation
Exception Processor
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
Key Impacts FI$Cal Depts will submit journals in FI$Cal instead of transaction requests
Manual Debt Cash Transfers
FI$CAL DEPARTMENTS
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 43
GL Processor
Approve Journal
SCO GL Journal
Approver
Approve Journal
GL Approver
Create GL Journal
Identify cash
necessary to ensure
successful transfer
Create journal entry
to transfer cash
Run Journal Edit
Budget Check
Journal
Post Journal Cash Validation
Cash Validation
occurs by fund and
the fund’s ‘available
cash’ balance is
updated immediately
upon successful
Cash Validation
Journal is
posted in the
General Ledger
SCO approves
journals
Dept approves
journals
FI$CAL DEPARTMENTS
Key Impacts Non-FI$Cal Depts will continue to submit Cash Transfer Letters for their cash transfers
Cash Transfer Letters for Debt Cash Transfers will be updated for this process
Manual Debt Cash Transfers
FI$CAL DEPARTMENTS
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 44
NON-FI$CAL DEPARTMENTS
Approve Journal
Receive Transfer Request
Create GL Journal
Create journal entry
to transfer cash
Run Journal Edit
Budget Check
Journal
Post Journal Cash Validation
Cash Validation
occurs by fund and
the fund’s ‘available
cash’ balance is
updated immediately
upon successful
Cash Validation
Journal is
posted in the
General Ledger
SCO approves
journals
SCO receives
Cash Transfer
Letters from
Depts
SCO GL Journal
Processor
SCO GL Journal
ApproverSCO
• Debt Service and amortization schedules are available in DM for
each debt and account for the principal and interest payments.
• Debt Service payments are made directly out of Accounts
Payable using STO data.
• Deal Management provides payment schedules that are
prepared by the STO and debt issuing departments.
• Debt Service includes the following Business Processes:
– Debt Service Payments
Debt Service
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 45
Debt Service Payments
Key Impacts STO and FI$Cal Depts will submit vouchers instead of claim schedules
STO submits for
STO managed debt
FI$Cal Depts
submit for Dept
managed debt
Debt Project is
used for debt
service
Process PaymentsCreate Expedited
Voucher
STO
Audit Voucher
Workflow
voucher to SCO
for approval
Calculate Debt Service
(Outside FI$Cal)
Approve Voucher
STO AP
Processor
Workflow voucher
to STO or Dept for
approval
Additional
approval as
needed (e.g. SCO
SARD)
AP ApproverSCO AT
Approver
Provides debt
service schedules
for each debt
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 46
FI$CAL DEPARTMENTS
Expedited
payments are
processed by
Express Payments
Pay Cycle
SCO generates
the warrants
Debt Service Payments
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix
NON-FI$CAL DEPARTMENTS
47
NON-FI$CAL DEPARTMENTS
Key Impacts For non-STO managed debt, Non-FI$Cal Depts will continue to submit claim schedules
Voucher is created
and expedited
Debt Project is used
for debt service
Include Claim ID as
Invoice ID
Include only 1 fund
per voucher
Receive ClaimProcess
PaymentsApprove Voucher
All vouchers can
be reviewed before
being approved
Expedited
payments are
processed by
Express Payments
Pay Cycle
SCO generates
the warrants
SCO AP Expedite
Processor
SCO AP Expedite
Approver
Create Voucher
SCO receives
and audits claim
SCO
(Outside FI$Cal)
• Vouchers can be submitted as early as needed by the
responsible parties. These can be made at any time in advance,
adjusted as needed, and put on hold or future dated.
• Processes have been delivered for expediting vouchers.
Debt Service Timing
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 48
• New refunding debt is issued to pay off old debt, normally to
achieve cost savings associated with lower interest rates (i.e. to
refinance the bonds)
• This process allows STO and debt issuing Departments to add
refunding details into FI$Cal for refunding (sell/buyback),
defeasances, calling a debt, etc.
• Refunding Debt includes the following Business Processes:
– Refund Debt
– Commercial Paper Defeasance
Refunding Debt
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 49
Refund Debt
Key Impacts The main analysis between DOF and STO occurs outside FI$Cal to determine
refunding needs
DOF, STO, & Depts
DOF, STO, and debt issuing
Departments review existing debt
and have the authority to refinance
their debt
STO and debt issuing Departments
will map all debt events that will be
interfaced or uploaded into FI$Cal
Record RefundingRefund Debt
Record deal buyback for
refunded debt
FI$Cal DM will populate
the appropriate full accrual
accounting entries and
calculate refunding gain/loss
(Outside FI$Cal)
Issue New Debt
Record new
debt issuance
Refer to Debt
Issuance section
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 50
Commercial Paper Refunding
Key Impacts Commercial paper will be refunded on a first in, first out basis
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 51
Identify Commercial Paper to Refund
Buy-Back Commercial Paper
Run report to
identify commercial
paper deals that need
to be bought back
Run buy-back
functionality in DM
Control DM
Processor
Note Refunding Bond
Note refunding bond
on deal
Change Impact Activity• Description:
– A walkthrough with the FI$Cal team to assist departments to complete example
change impacts
– Departments will have the understanding on how to complete the remainder of
the tool on their own
– At your table, discuss how the FI$Cal business processes and related change
impacts may affect your department
– Document three impacts in your BPW Change Impact Tool
• Roles:
– Facilitator – Helps lead the discussion with your department on the FI$Cal
business processes and change impacts
– Recorder(s) – Captures the department-specific impacts from the activity in your
BPW Change Impact Tool
• Tool:
– Change Impact Tool – Task to document the changes in People, Process,
Technology, and Communication that will arise from the implementation of FI$Cal
business processes
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 52
Next Steps (STO & SCO)• Share BPW materials at your department
• Complete the BPW Change Impact Tool
• Attend Process Confirmation Meetings
• Identify and work on updating internal department policies, processes,
and documentation
• Prepare for:
– Participate in UAT Pass 1
• November 2016 through January 2017
– Submit Role Mapping for UAT Pass 2
• Due January 27, 2017
– Participate in UAT Pass 2
• March 2017 through May 2017
– End-User System Training
• March 2017 through May 2017
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 53
Next Steps (2017 Depts)• Share BPW materials at your department
• Complete the BPW Change Impact Tool
• Review with your FI$Cal CMO Department Readiness Coordinator
– Identify and work on updating internal department policies, processes, and
documentation.
• Prepare for:
– Role Mapping Workshop (TECH727)
• January 2017
– Change Workshop (READ720)
• February/March 2017
– End-User Training (TRNG706)
• May through June 2017
– User Support Labs (TRNG713)
• July 2017
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 54
Next Steps (Others)• Share BPW materials at your department
• Identify and work on updating internal department policies, processes,
and documentation.
Introduction Debt
Issuance
Debt
Proceeds
Debt Funded
Transactions
Debt
Service
Refunding
DebtClosing Appendix 55
Question and Answer
FI$Cal Information:http://www.fiscal.ca.gov/
or e-mail the FI$Cal CMO Team at: